ABSOLUTELY if you met dates and communicated with a paper trail. Check out me website http://www.JeanSOLMyHouse.com for your RE needs.

You need to read the purchase & sale agreement that you signed - it should state in there what you are entitled to should buyer not be able to secure a mortgage. Speak with your agent and attorney. You do need to notify the sellers IN WRITING with copies of the mortgage companies statement of refusal.

Virginia,

Since I am not licensed in your home state of MA, this really is a question for your buyer's agent or an attorney. However, the contingency you described sounds similar to a financing contingency that we use in our purchase and sale agreements in Georgia. Read your agreement closely to ensure that you are within the time limit for making notification to terminate your agreement (which typically must be in writing). With respect to disposition earnest money and/or down payment money, again check with your agent or a real estate attorney. Usually, there are provisions in the contract that define who is holding this money and how this money is dispersed. The holder of the money will most likely need to follow a specific procedure to notify the parties before your earnest money or down payment can be refunded. In some cases, all or part of the earnest money or down payment may not be refundable. Consult with your buyer's agent or a real estate attorney. Best wishes - Ted

Whether you are entitled to a refund of your escrow payment depends on timing and actions adhering to the contract language. What time frame was allowed for you to obtain the mortgage? Typically, this is 5 days to apply and a total of 30 days for loan committment. Then you must also inform the owners in writing that the mortgage was rejected. Did you meet this time frame? Even if you knew in time, you would still have had to inform the owners in writing. Read the contract carefully to be sure that you followed the guidelines.